Excise Tax Act

Marginal note:Bankruptcies

• 265 (1) For the purposes of this Part, where on a particular day a person becomes a bankrupt,

  • (a) the trustee in bankruptcy is deemed to supply a service to the bankrupt of acting as trustee in bankruptcy and any amount to which the trustee is entitled for acting in that capacity is deemed to be consideration payable for that supply, but in every other respect, the trustee in bankruptcy is deemed to be the agent of the bankrupt and any supply made or received and any act performed by the trustee in the administration of the estate of the bankrupt or in the carrying on of any business of the bankrupt is deemed to have been made, received or performed, as the case may be, by the trustee as agent of the bankrupt;

  • (b) the estate of the bankrupt shall be deemed not to be a trust or an estate;

  • (c) the property and money of the person immediately before the particular day shall be deemed not to pass to and be vested in the trustee in bankruptcy on the bankruptcy order being made or the assignment in bankruptcy being filed but to remain vested in the bankrupt;

  • (d) the trustee in bankruptcy, and not the person, is liable for the payment or remittance of all amounts (other than amounts that relate solely to activities in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate) that become payable or remittable by the person under this Part during the period beginning on the day immediately after the day the trustee became the trustee in bankruptcy of the person and ending on the day the discharge of the trustee is granted under the Bankruptcy and Insolvency Act, except that

    • (i) the trustee is liable for the payment or remittance of amounts that became payable or remittable by the person after the particular day in respect of periods that ended on or before the particular day, or of amounts that became payable or remittable by the person after the particular day in respect of supplies of real property made to the person on or before the particular day, only to the extent of the property and money of the person in possession of the trustee available to satisfy the liability,

    • (ii) the trustee is not liable for the payment or remittance of any amount for which a receiver (within the meaning assigned by subsection 266(1)) is liable under section 266, and

    • (iii) the payment or remittance by the person of an amount in respect of the liability shall discharge the liability of the trustee to the extent of that amount;

  • (e) where, on the particular day the person is registered under Subdivision D of Division V, the registration continues in relation to the activities of the person to which the bankruptcy relates as though the trustee in bankruptcy were the registrant in respect of those activities and ceases to apply to the activities of the person in which the person begins to engage on or after the particular day and to which the bankruptcy does not relate;

  • (f) where, on or after the particular day the person begins to engage in particular activities to which the bankruptcy does not relate, the particular activities shall be deemed to be separate from the activities of the person to which the bankruptcy relates as though the particular activities were activities of a separate person, and the person may

    • (i) apply for, and be granted, registration under Subdivision D of Division V, and

    • (ii) establish fiscal periods and establish and make elections respecting reporting periods,

    in relation to the particular activities as though they were the only activities of the person;

  • (g) the reporting periods of the person begin and end on the days on which they would have begun and ended if the bankruptcy had not occurred, except that

    • (i) the reporting period of the person during which the person becomes a bankrupt shall end on the particular day and a new reporting period of the person in relation to the activities of the person to which the bankruptcy relates shall begin on the day immediately after the particular day, and

    • (ii) the reporting period of the person, in relation to the activities of the person to which the bankruptcy relates, during which the trustee in bankruptcy is discharged under the Bankruptcy and Insolvency Act shall end on the day the discharge is granted;

  • (h) subject to paragraph (j), the trustee in bankruptcy shall file with the Minister in prescribed form containing prescribed information all returns in respect of

    • (i) the activities of the person to which the bankruptcy relates for, or

    • (ii) supplies of real property to which the bankruptcy relates and that are made to the person in,

    reporting periods of the person ending in the period beginning on the day immediately after the particular day and ending on the day the discharge of the trustee is granted under the Bankruptcy and Insolvency Act and that are required under this Part to be filed by the person, as if those activities were the only activities of the person;

  • (i) subject to paragraph (j), if the person has not on or before the particular day filed a return required under this Part to be filed by the person for, or in respect of a supply of real property made to the person in, a reporting period of the person ending

    • (i) on or before the particular day, and

    • (ii) in, or immediately before, the fiscal year of the person that included the particular day,

    the trustee in bankruptcy shall, unless the Minister waives in writing the requirement for the trustee to file the return, file with the Minister in prescribed form containing prescribed information a return for that reporting period of the person or in respect of that supply, as the case may be;

  • (j) where there is a receiver (within the meaning assigned by subsection 266(1)) with authority in respect of a business, a property, affairs or assets of the person, the trustee in bankruptcy is not required

    • (i) to include in any return any information that the receiver is required under section 266 to include in a return, or

    • (ii) to file a return in respect of any supply of real property made to the person in respect of which the receiver is required under section 266 to file a return; and

  • (k) the property and money held by the trustee in bankruptcy for the person on the day an order of absolute discharge of the person is granted under the Bankruptcy and Insolvency Act shall be deemed not to pass to the person on the order being granted but to have been held by and vested in the person continuously since the day it was acquired by the person or the trustee, as the case may be.

• Marginal note:Definitions

  (2) In this section, bankrupt and estate of the bankrupt have the same meanings as in the Bankruptcy and Insolvency Act.